Alex Meruelo walking away from ownership of NHL’s Arizona Coyotes

Alex Meruelo.

The NHL’s aspirations of bringing professional hockey back to the Phoenix area took a significant hit on Monday night.

Per multiple reports, including The Associated Press, the son of Arizona Coyotes owner Alex Meruelo informed the team’s staff that he no longer desires to continue his NHL ownership. This comes four days after his bid to purchase land for a potential new Coyotes arena took a hit when the Arizona State Land Department canceled an auction for a 110-acre lot in north Phoenix that had been earmarked for a new arena and entertainment district.

Meruelo would have reportedly needed a special use permit to build the arena, and the ASLD wanted him to obtain the permit prior to the auction.

The Coyotes had been in limbo regarding their arena situation for a few years. The team has played at Arizona State’s Mullett Arena since 2022.

Meruelo reportedly does not feel there are any “viable options that would allow him to reactivate the franchise” under the guidelines the league gave him following the sale of the team to Utah Jazz owner Ryan Smith, who rebranded the team as the Utah Hockey Club for the 2024 season.

Meruelo, who made $1.2 billion from the sale of the Coyotes, had five years from the date of the sale to reactivate the franchise. However, deputy commissioner Bill Daly stated the league had to be informed of the reactivation by Dec. 31, 2027, and the team’s new arena needed to be at least 50 percent completed by then as well.

Had Meruelo brought the Coyotes back, he would have had to pay back the $1 billion from the sale as an expansion fee with the remaining $200M going to the other 32 owners as a relocation fee, per GoPHNX.com.

Want more articles like this? Follow Yardbarker on MSN to see more of our exclusive NHL content.

More must-reads:

Trending slideshow: The best Stanley Cup Final games of all time (Provided by Yardbarker)